Closing Bell: Sensex Surges 1,073 Points, Nifty 50 Reclaims 24,000 Mark as Crude Oil Falls Below $95 per barrel

Market Update at 04:09 PM: Indian equity benchmarks ended sharply higher on Monday, May 25, as easing crude oil prices and optimism surrounding a potential U.S.-Iran peace deal boosted investor sentiment. The decline in global oil prices, coupled with strength in the rupee, supported a broad-based rally across domestic equities.

The benchmark Nifty 50 opened nearly 220 points higher and extended gains through the session to hit an Intraday high of 24,054.45. The index reclaimed the crucial 24,000 mark and closed at 24,031.70, up 312.40 points or 1.32 per cent, marking its second consecutive session of gains.

The BSE Sensex also witnessed strong buying interest, rising 1,073.61 points or 1.42 per cent to settle at 76,488.96. Meanwhile, the Bank Nifty index outperformed broader benchmarks, surging over 1,200 points or 2.29 per cent. Volatility also cooled sharply, with the India VIX index declining 6 per cent.

Brent crude futures fell nearly 5 per cent towards USD 95 per barrel, extending losses from the previous week after reports indicated progress in negotiations between the U.S. and Iran. Lower crude oil prices eased concerns over inflation and reduced pressure on oil-importing economies such as India. The fall in oil prices triggered relief rallies across Asian markets and supported sentiment in sectors sensitive to fuel costs.

The Indian rupee appreciated for the third straight trading session, touching a two-week high amid declining crude oil prices and easing hedging costs. The domestic currency strengthened 0.59 per cent to 95.11 against the U.S. dollar during the session. Improved risk appetite and expectations of reduced import costs due to softer oil prices further supported the rupee.

Sectorally, 10 out of 11 major indices ended in positive territory. The Nifty PSU Bank index emerged as the top sectoral gainer, climbing 2.9 per cent and extending gains for the fifth consecutive trading session. All constituents of the index ended higher.

Broader markets also participated in the rally, with the Nifty Midcap index advancing 0.94 per cent, while the Nifty Smallcap 100 index gained 1.34 per cent. On the other hand, the Nifty FMCG index was the only sectoral loser, slipping 0.18 per cent and extending its losing streak to six straight sessions.

Among stock-specific movers, oil marketing companies witnessed strong buying momentum. BPCL and HPCL gained between 3.5 per cent and 4.5 per cent after state-run fuel retailers increased petrol and diesel prices for the fourth time this month to offset previous losses.

Private banking heavyweights also contributed significantly to benchmark gains. HDFC Bank rose 2.61 per cent, while ICICI Bank advanced 2.18 per cent. Eicher Motors surged 6.19 per cent after the automaker reported quarterly earnings ahead of market expectations, supported by robust demand trends.

The major contributors to the Nifty 50 rally included HDFC Bank, which added 66.75 points to the index, followed by ICICI Bank with 42.82 points and Larsen & Toubro with 27.17 points. However, Infosys, ONGC and Max Healthcare Institute limited gains, dragging the index lower by 4.58 points, 4.26 points and 3.60 points, respectively.

Market breadth remained firmly in favour of advancing stocks on the NSE. Out of 3,419 traded stocks, 2,271 advanced, while 1,046 declined and 102 remained unchanged.

A total of 122 stocks touched their 52-week highs during the session, whereas 31 stocks hit their 52-week lows. Additionally, 163 stocks were locked in Upper Circuits, while 91 stocks hit Lower Circuits.

Market Update at 2:31 PM: Indian benchmark indices traded sharply higher on Monday, tracking strong global cues after optimism grew around a possible U.S.-Iran agreement that could ease geopolitical tensions and stabilise crude oil prices.

As of 2:00 PM, the Nifty 50 rose 248.05 points, or 1.05 per cent, to 23,967.35, while the Sensex gained 859.95 points, or 1.14 per cent, to 76,275.30.

Investor sentiment improved after U.S. President Donald Trump stated that negotiations with Iran were progressing constructively. However, he also said that Washington was in no hurry to finalise a deal, suggesting that the U.S. believes time remains on its side in the negotiations.

The positive developments triggered a sharp decline in crude oil prices, easing concerns around inflation and global economic uncertainty. Brent crude futures for May delivery dropped as much as 5 per cent and were trading 4.85 per cent lower at USD 98.52 per barrel. Market participants expect that a truce between the U.S. and Iran could eventually reopen the Strait of Hormuz, a key global oil shipping route.

Among frontline stocks, Eicher Motors, Adani Enterprises, and Tata Motors Passenger Vehicles emerged as some of the Top Gainers on the Nifty 50 index, benefiting from the broad-based rally across sectors.

The rally was also visible in the broader markets. The Nifty MidCap index traded 0.94 per cent higher, while the Nifty SmallCap index advanced 1.38 per cent, indicating strong buying interest beyond Large-Cap stocks.

Sector-wise, banking and financial stocks led the gains. The Nifty PSU Bank index was the top-performing sectoral index during the session. The Nifty Private Bank, Nifty Bank, and Financial Services indices also outperformed the broader market, supported by improved risk appetite among investors.

On the other hand, the Nifty Healthcare index underperformed compared to other sectors, even as overall market breadth remained positive.

Market Update at 12:19 PM: Indian equity benchmark indices traded sharply higher on Monday, tracking positive global cues after renewed optimism surrounding a potential U.S.-Iran agreement boosted investor sentiment across global markets.

At around 12:00 PM, the Nifty 50 was up 270.35 points, or 1.14 per cent, while the Sensex surged 943.61 points, or 1.25 per cent, to 76,358.96.

Among the top gainers on the Nifty 50 index were Eicher Motors, Eternal, and Shriram Finance, supported by broad-based buying across sectors.

The rally extended to broader markets as well. The Nifty MidCap index traded 0.94 per cent higher, while the Nifty SmallCap index gained 1.38 per cent, reflecting improved risk appetite among investors.

On the sectoral front, the Nifty PSU Bank index emerged as the top performer. Banking and financial stocks remained in focus, with the Nifty Private Bank, Nifty Bank, and Financial Services indices also outperforming the broader market. However, the Nifty Healthcare index underperformed compared to other sectors.

Global sentiment improved after U.S. President Donald Trump stated that negotiations with Iran were progressing constructively. He also reportedly advised negotiators not to rush into a deal, indicating that Washington believes time remains on its side in the ongoing discussions.

Meanwhile, crude oil prices witnessed a sharp decline amid expectations that easing tensions between the U.S. and Iran could potentially improve access through the Strait of Hormuz, a key global oil shipping route.

Brent crude futures fell as much as 5 per cent, with the May futures contract declining 5.49 per cent to USD 97.86 per barrel. The sharp drop in crude prices also supported market sentiment, as lower oil prices are generally viewed as positive for oil-importing economies such as India.

Market Update at 09:35 AM: Indian equity benchmarks opened sharply higher on Monday, supported by strong global cues and optimism surrounding a possible diplomatic breakthrough between the U.S. and Iran. Lower crude oil prices further boosted investor sentiment, helping benchmark indices extend gains in early trade.

At around 9:20 AM, the Nifty 50 advanced 249.15 points, or 1.05 per cent, to 23,974.15, while the Sensex climbed 818.14 points, or 1.08 per cent, to 76,233.49.

The broader markets also traded firmly in positive territory. The Nifty MidCap index rose 0.73 per cent, while the Nifty SmallCap index gained 1.07 per cent, reflecting improved risk appetite among investors.

Market sentiment strengthened after U.S. President Donald Trump stated that negotiations with Iran were progressing constructively. He added that U.S. negotiators had been advised not to rush the discussions, indicating that Washington believes time remains in its favour.

Meanwhile, global crude oil prices declined sharply amid expectations that easing tensions between the U.S. and Iran could improve stability in the region and potentially reopen the Strait of Hormuz more smoothly for energy shipments. Brent crude futures fell as much as 5 per cent during trade. The May futures contract was down 3.92 per cent at USD 99.48 per barrel.

Pre-Market Update at 7:42 AM: Indian benchmark indices, the Sensex and Nifty 50, are expected to open on a strong note on Monday, May 25, tracking upbeat global cues after hopes of a potential U.S.-Iran peace agreement pushed crude oil prices sharply lower. Easing oil prices improved investor sentiment by reducing concerns around inflation and interest rates.

Gift Nifty was trading near the 23,961 mark, a premium of nearly 196 points over the previous close of Nifty futures, indicating a positive start for domestic equities. Asian markets advanced, while Wall Street ended higher as investors reacted positively to signs of progress in talks aimed at easing tensions in the Middle East.

Investor optimism improved after U.S. President Donald Trump stated that Washington and Tehran were close to a broad agreement that could help ease tensions in the Gulf region and reopen the Strait of Hormuz. Trump said most parts of the agreement had already been negotiated and only final details remained. However, Iranian media rejected claims that the Strait of Hormuz would be fully reopened under the proposed deal, reiterating that the strategic route would remain under Tehran’s control.

Meanwhile, economic data from the U.S. remained weak. The University of Michigan’s Consumer Sentiment Index dropped to 44.8 in May from 49.8 in April, missing market expectations of 48.2. The sharp decline highlighted continued concerns among consumers over inflation and economic uncertainty.

In a major domestic development, the Reserve Bank of India announced a record Dividend payout of Rs 2.87 lakh crore to the government for FY26, marking a 6.7 per cent increase from Rs 2.69 lakh crore in the previous financial year.

Petrol and diesel prices were increased for the fourth time in less than two weeks. In Delhi, petrol prices rose by Rs 2.61 per litre to Rs 102.12, while diesel prices increased by Rs 2.71 to Rs 95.20 per litre.

Crude oil prices witnessed a sharp decline amid expectations of a possible U.S.-Iran agreement and reopening of the Strait of Hormuz. Brent crude fell 5.08 per cent to USD 98.28 per barrel, while WTI crude dropped 5.29 per cent to USD 91.49 per barrel.

Gold prices moved higher as a weaker dollar and falling oil prices boosted safe-haven demand. Spot gold climbed 1.4 per cent to USD 4,570.88 per ounce, while spot silver surged 3.9 per cent to USD 78.42 per ounce. The dollar index slipped below the 99 mark, retreating from six-week highs as easing geopolitical tensions reduced concerns over inflation and aggressive rate hikes.

From a derivatives perspective, the Put-Call Ratio (PCR) stood at 1.01, indicating a balanced market setup with a slight positive bias. On the put side, significant open interest was concentrated at the 23,000 and 23,500 strikes, suggesting these levels could act as important support zones for Nifty 50. On the call side, the highest open interest among near out-of-the-money strikes was seen at the 24,000 level, making it an immediate resistance zone.

Technically, Nifty 50 continues to trade within a narrow consolidation range. Immediate resistance is placed in the 23,830–23,860 zone, which remains a key breakout level for bulls. A sustained move above this range may trigger fresh momentum and short covering, potentially pushing the index towards 24,000 and 24,130.

On the downside, immediate support is seen at 23,450, followed by stronger support near 23,262. Analysts believe the broader trend remains range-bound with a mildly positive bias as long as the index holds above these support levels.

Several stocks are expected to remain in focus due to earnings announcements, index changes and corporate developments.

Companies scheduled to announce quarterly earnings on May 25 include Aditya Birla Fashion and Retail, Amara Raja Energy & Mobility, Awfis Space Solutions, Container Corporation of India, NBCC, Rail Vikas Nigam, Suzlon Energy and Hitachi Energy India among others.

For Monday’s session, SAIL and Kaynes Technology India remain under the F&O ban list.

On May 22, Foreign Institutional Investors (FIIs) sold equities worth Rs 4,440.47 crore, while Domestic Institutional Investors (DIIs) bought shares worth Rs 6,003.53 crore.

On Friday, Indian markets ended higher amid gains in select heavyweight stocks. The Sensex rose 231.99 points, or 0.31 per cent, to close at 75,415.35, while Nifty 50 gained 64.60 points, or 0.27 per cent, to settle at 23,719.30.

U.S. markets also ended in positive territory. The Dow Jones Industrial Average climbed 294.04 points, or 0.58 per cent, to close at a record high of 50,579.70. The S&P 500 advanced 0.37 per cent to 7,473.47, while the Nasdaq Composite rose 0.19 per cent to 26,343.97.

Among major stocks, NVIDIA fell 1.90 per cent, while Advanced Micro Devices gained 3.99 per cent. Apple added 1.26 per cent, Dell Technologies surged 17 per cent, HP jumped 15 per cent, Qualcomm rallied 12 per cent, and Tesla gained 1.95 per cent.

Disclaimer: The article is for informational purposes only and not investment advice.

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